Tax News & Views Preparing for Busy Season Roundup

January 13, 2021

Tax Season Is Coming, and It Could Be Messy.  Richard Rubin, WSJ. 

Tax return prep in the time of COVID: "The economic disruptions of 2020 will get reflected in the tax returns filed in the coming months, reshaping people’s typical patterns and changing their usual tax refunds. All of that will happen as the IRS implements new laws and completes the second, $600 round of stimulus payments approved by Congress last month."

And E-Filing could help:

"In a typical year, the IRS would begin allowing people to file returns in late January. The agency hasn’t set a start date this year but has been programming its systems and is on track, said Erin Collins, Ms. Olson’s successor as national taxpayer advocate.

The IRS Tuesday urged taxpayers to file electronically, provide updated bank information for direct deposits and use the agency’s website rather than overburdened phone lines. “We ask taxpayers to be patient,” the IRS said in a statement."

There’s Lots to Like in the Like-Kind Exchange Regs.  Marie Sapirie, Tax Notes.

Real property definition for section 1031 purposes includes the kind you can't quite touch.  

"The final regulations provide that tangible and intangible property is real property under section 1031 if it’s classified as real property under the law of the state or local jurisdiction where it’s located at the time of the transfer in an exchange. Property is real property if it meets the following requirement: It’s real property under state and local law, is listed as real property in the final regulations, or is considered real property based on a facts and circumstances test in the final rules."

New COVID Relief Provisions of Interest to Banks.  Paul Sirek, Eide Bailly.

While the focus is on borrowers and taxpayers, lenders may also be affected by the various COVID relief provisions.

"Highlights of the CAA’s COVID-19 relief provisions potentially affecting banks, their owners and customers include:

  • $600 stimulus checks
  • A second round of forgivable Paycheck Protection Program (PPP) Loans
  • Relaxed forgiveness criteria for PPP loans up to $150,000 and hold-harmless for banks
  • Deductibility of expenses paid with the proceeds of forgiven loans
  • No reduction of PPP loan forgiveness for EIDL advances
  • Extension and expansion of the Employee Retention Tax Credit (ERC)
  • Extension of the credit for paid sick and family leave"

Coca-Cola downgraded at JPMorgan based on risk from multibillion-dollar tax case. Tonya Garcia, MarketWatch.

A rare transfer pricing victory for the government affects the market. 

"Coca-Cola Co. KO, -0.18% stock was downgraded to neutral from overweight at JPMorgan based on the risk posed by a multibillion-dollar tax court challenge the beverage giant faces."



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